3 Ways That Buying a New Construction Home Beats Buying an Existing One, Every Time

3 Ways That Buying a New Construction Home Beats Buying an Existing One, Every TimeAre you in the market for a new house? Whether you are a first-time home buyer or are upgrading to get more space, you will need to choose between buying an existing home or building a brand new one. As you might imagine, there are pros and cons to each kind of home. But if it is in your budget, you may want to lean towards a newer home over an older one. Let’s explore three reasons why new construction homes are better than existing homes.

Customize Every Aspect To Your Tastes

Ask anyone living in a custom-built home and they are likely to tell you that the ability to customize everything was a major deciding factor. When you build a brand-new home, your input isn’t limited to the floor plan or room layout. Your family can choose everything from the paint colors to the door hinges. Imagine having your pick of appliances, cabinets, flooring, and trim in every room – that’s what new construction is all about.

Modern, Efficient And Convenient

A brand-new home means a home that is energy-efficient and built for convenience. Your home can be designed with as much advanced technology as you have in mind. Seamless Wi-Fi and other wireless connectivity for all your devices. A cutting-edge video security system to keep your family safe. Efficient heating and cooling that offers superior indoor air quality. And, of course, lower energy costs and a smaller carbon footprint.

If you are a fan of technology and the conveniences it can provide, a new construction home is a perfect choice.

Many Years of Trouble-Free Living

Another benefit of living in a new home is that everything around you far less likely to fail over the next few years. Moving into an older home means worrying about the roof, the electrical wiring, the appliances and a whole host of other potential problems. In a new construction home, you will be surrounded by brand-new machinery that is built with the future in mind. Also, even if you do run into any issues with your home or appliances, it should all be under warranty.

If you’re ready to discuss financing options for a new construction home, contact us today. Our professional mortgage team is happy to help.

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Looking to Buy a Home in 2018 and Don’t Know Where to Start? Here’s a Few Tips

Looking to Buy a Home in 2018 and Don't Know Where to Start? Here's a Few TipsAre you a renter that has become tired of paying someone else’s mortgage and not building any equity? Or a homeowner who has a growing family and is in need of more space? Whatever the case, if you are in the market for a new home there is no time like the present. Let’s explore a few tips that will help you to prepare for the home buying experience.

Tip #1: Prepare For A Busy Spring Season

First, it should be pretty obvious that you aren’t the only house hunter on the market. Other local individuals and families alike will be searching for a new house to call their own. As you may know, the spring is generally when the local real estate market starts to heat up. So, if you are looking to buy, you may want to address your needs earlier in the spring rather than later. The sooner you can get the paperwork signed, the less of a chance you end up in a bidding war.

Tip #2: Mortgage Rates May Be Trending Up

While this is in no way a prediction, there have been some indications that mortgage interest rates may be trending higher in 2018. If this does end up being the case, the cost of buying a home is going to be a little bit more. So if you can move quickly and get your mortgage pre-approved now, you may find that you end up with a better deal than those families who wait until the summer to make a move.

Tip #3: Prepare Your Finances And Credit In Advance

Finally, it’s a great best practice to ensure that your personal finances are prepared in advance. Your real estate agent will be able to assist you with which documentation you will need to have ready. You should also check in with one of the major credit reporting agencies. They will be able to advise you as to whether you have any issues with your credit rating or FICO score.

Buying a home is always an exciting experience – one which can be relatively stress-free if you are prepared. When you are ready to discuss financing your dream home, give our offices a call.

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3 Great Reasons to Use an Experienced Mortgage Professional for Your Next Mortgage

3 Great Reasons to Use an Experienced Mortgage Professional for Your Next MortgageAre you thinking about buying a new home in 2018? Whether you are a first-time home buyer or you’re downsizing now that the kids have moved out, you are likely considering whether or not you will need a mortgage. Even if you can afford to buy a home in cash, taking out a mortgage can help you maintain your liquidity for other spending purposes.

No matter what the case, you will want to work with someone who can help you understand your options and what the right decision might be. Let’s explore three excellent reasons why you should work with an experienced mortgage professional for your next mortgage.

Helpful Advice, Every Step Of The Way

The first – and best – reason to work with a mortgage professional is that they are working with your best interests in mind. For example, you may qualify for a number of different interest rates and amortization periods. Which do you choose? Or perhaps your options are more limited as you are rebuilding your credit. Do you know which mortgage will best help you over the long term?

Your mortgage advisor is there to provide helpful, supportive advice as you move through the process.

Access To The Best Possible Rates

Another reason to work with a mortgage professional is that they have access to a wide variety of mortgage products, including those with lower interest rates. While you might think that 0.1 percent off of your mortgage rate doesn’t seem like much, over time this can result in thousands of dollars in savings.

Building A Long-Term Relationship For Future Needs

Finally, keep in mind that you will not just be a “one and done” with your mortgage advisor. This is the start of a long-term relationship that you may come to rely on in the future. You may decide to buy a larger home when you start a family or buy an investment property to diversify your portfolio. No matter the case, you will need someone whom you can trust will guide you in the right direction.

These are just a few of the many good reasons to work with an experienced mortgage professional. When you are ready to buy a new home, or if you are a homeowner in search of refinancing, contact our offices today. We will be happy to share our advice and expertise to help you choose the best mortgage product.

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Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be Successful

Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be SuccessfulAre you in the market for a new house? In a buyer’s market, finding and closing on a beautiful home can seem very easy. However, if you are shopping when the market is hot, you may end up fighting bidding wars and losing your dream home to a competing buyer. Let’s take a look at four tips that you will need to be successful when house hunting in a hot local real estate market.

Tip #1: Do Your Research Ahead Of Time

It should go without saying that in a hot market you will need to move quickly. Making an effort to do all your research ahead of time will ensure that you do not have to later, once you’ve found the perfect dream home. Check in with your real estate agent to find out what paperwork and other material will be needed.

Tip #2: Get A Mortgage Pre-approval

Once you have found your dream home, you may discover that other buyers are interested or have submitted bids. In this case, it is crucial that you can demonstrate that you have your mortgage financing pre-approved. Remember that the seller wants to close their sale quickly and for the best price. Showing up with pre-approved mortgage financing proves that you are serious about buying their home.

Tip #3: Be Ready To Pounce (But Don’t Be Hasty!)

Speaking of being serious, it is essential that you are ready to pounce on the right listing. A hot market means that you won’t be the only potential buyer checking out a home. The last thing you want to do is find the right house, then end up losing the chance to buy it because of unnecessary delays.

Tip #4: Small Sacrifices Are Okay

The final tip to keep in mind is that sometimes you will have to make a small sacrifice to close the deal. For example, the seller may want some special terms added to the agreement. Alternatively, they might ask you to pick up some of the closing costs. Whatever the case, keep in mind that a hot market means that you lose a bit of leverage. If it’s a small sacrifice, it might be worth it.

Buying a house in a hot real estate market can be challenging, but a little preparation will go a long way in ensuring you are the winning bidder. When you are ready to buy your next home, get in touch with our professional team of mortgage experts. We are happy to help you find the right mortgage for your goals and financial situation.

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On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage

On Time, Every Time: How Being Late on Monthly Payments Can Affect Your MortgageAre you the type of person that struggles with remembering to pay their bills on time? You’re not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let’s take a quick look at how paying your loan or other monthly payments late can have a negative impact on your mortgage.

Your Credit Score Is At Risk

As you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department store credit card – can result in negative marks showing up on your credit report. If you are late enough times or fail to repay the late payment in full, then your score will start to drop.

Refinancing Can Be Affected

If you already have a mortgage, then a lower credit score can be a problem when you try to refinance. The process of refinancing involves taking out a new mortgage, in which your lender will reassess your risk using your credit score as one of the indicators. If you have been making late payments, you might end up having to settle for a higher interest rate or you may even be declined for the new mortgage.

Making A Late Payment? Contact Your Lender

If you are caught in a bind and have to make a late payment, it is best to get a call in to your lender as soon as possible. First, there may be a grace period in which you can be a few days late without any penalty. If that little bit of breathing room is all you need to get caught up, you’re set. If not, you can let them know your circumstances and discuss what options you have.

It is essential to pay your monthly payments on time, even if it means making some small sacrifices in other areas. The better your credit score looks, the more opportunities you will have to make positive financial moves in the future. To learn more about monthly mortgage payments or to take out a mortgage on a new home, contact us today. Our team of mortgage professionals is here to help you find a mortgage to buy the home of your dreams.

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3 Dog Breeds That Are Perfect for the Allergy-Prone Pet Lover

3 Dog Breeds That Are Perfect for the Allergy-Prone Pet LoverDo you find yourself itchy and sneezing after an encounter with a friendly, furry dog? You are not alone. The CDC estimates that around ten percent of Americans suffer from allergies related to dogs or cats. But, of course, that is no reason not to enjoy the love of a dog. So, if you are ready to push your suffering aside and adopt a furry pal, below are a few breeds that are perfect for those prone to allergies.

What Causes Dog-Related Allergies?

Do you know what the primary causes of pet-related allergies are? Many people believe that reactions are triggered by hair that has been shed, but this isn’t entirely accurate. Shed hair carries flakes of dead skin known as dander, and it is this dander which causes most typical dog-related allergic reactions.

In an allergy-prone individual, this dander is treated as a harmful invading virus or bacteria. The body issues an immune response with symptoms like sneezing, watery eyes, hives and coughing which can be treated with antihistamines.

Note that it is not just a dog’s dander that can cause a reaction. Dog saliva and urine are also known to carry the proteins that can trigger allergic reactions.

3 Breeds Perfect For Allergy Sufferers

The Poodle – if you are the energetic type that likes to get out and walk, a Poodle might be the right fit. Poodles are recognized as a cleaner dog as they do not shed much fur. They love to get outside and can be trained easily.

The Schnauzer – if you are more of an introvert or have a quiet side, you might find a Schnauzer to be a better companion. These are smaller dogs that aren’t going to beg you to run around for a few miles each day.

The Bichon Frise – this breed is an excellent choice for first-time dog owners and those who prefer smaller dogs. Bichon Frise are happy, friendly dogs that are very sociable. They are not incredibly high maintenance, but they do need daily grooming.

Renting A Home That Doesn’t Allow Pets?

If you are thinking about how great it would be to have a dog but can’t get one due to your current rental situation, contact us today. Our friendly mortgage professionals are happy to introduce financing options for a pet loving home.

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Landlord Squeezing You for yet Another Rent Increase? It’s Time to Buy a Starter Home

Landlord Squeezing You for yet Another Rent Increase? It's Time to Buy a Starter HomeDid you recently receive your annual notice that the rent is going up? If so, you’re not alone. Millions of renters are seeing more and more of their income drained away due to higher rents. To make matters worse, every dollar in rent is one that you are not saving, investing or using to build your net worth. If you’re feeling the pinch of higher rents, it might be time to buy your first starter home.

Comparing Rent With A Mortgage

Have you ever done the math to understand how close your monthly rent might be to a mortgage payment? Here’s a quick and easy exercise. Multiply your monthly rent by twelve, and then multiply that number by 25. For example, if your rent is $1000 per month, that is $12,000 per year and $300,000 over 25 years. So if nothing changed from today, you could afford a $300,000 mortgage.

Homes Are More Affordable Than You Think

Many first-time home buyers are convinced that they can’t afford to enter the market, but that is not the case. There are homes available that fit almost every budget or price range. In fact, it is less important to worry about the total cost and more important to worry about location, size and local amenities like schools and parks.

Remember, when you buy a house you aren’t just locking yourself into a rental contract. You are investing in a home and property have the potential to gain in value over time.

A Few Other Considerations

Of course, there are some considerations that you will need to make as you start down the path to homeownership. The first is that your mortgage is unlikely to be your only monthly expense. You will also encounter property and other taxes, utility fees and if you buy a condominium or apartment, homeowners’ association fees. You will also be responsible for maintenance and upkeep since you own the home. But that also means that you are free to customize and renovate as you see fit.

Keep in mind that it is never too late to escape the rental trap. When you’re ready to start building your future by investing in your first home, contact us. Our experienced mortgage team is happy to share financing options that will suit your budget.

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How to Run a Quick Financial Health Check Before You Apply for a Mortgage

How to Run a Quick Financial Health Check Before You Apply for a MortgageAre you planning on using a mortgage to help cover the cost of a new home? If so, you will want to prepare your finances and figure out how you will manage all those wallet-draining monthly expenses. Let’s take a look at how to run a quick financial health check to ensure you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

First, it is essential to get the basics out of the way. If you haven’t already, it’s time to start a monthly budget to keep track of your income and expenses. Once you have a mortgage, it will be important to prioritize your monthly payments so that you don’t end up falling behind.

Starting a budget is easy and can be done with mobile apps, software, a spreadsheet or a pen and paper. List all sources of income so that you know exactly how much cash you are working with. Then, list out every one of your expenses. It can be tough to remember them all, so consider using debit and credit card statements from the past few months as a reminder.

Get A Copy Of Your Credit Report

Next, you will want to get a copy of your credit report so you can see what potential mortgage lenders will see when assessing your financial history. This is a free service that you can request once per year, so be sure to take advantage. Note that you will want to use government-approved websites for requesting your credit report. Be wary of scams.

Do You Have A Down Payment?

A down payment is not required for every home purchase, but having one saved up can make the buying process easier. The amount you will want to have saved up will depend on the cost of your home, whether you plan on carrying private mortgage insurance and a variety of other factors. If possible, try to save up an amount close to (or more than) twenty percent of the home’s purchase price.

Ready? Chat With A Professional

Now that you have run a quick financial health check, it is time to meet with a mortgage professional to discuss your options. Contact us today to book an appointment with one of our friendly expert advisors. We are happy to help you with financing so you can buy your perfect dream home.

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Mortgage 101: Understanding ‘PITI’ and What Goes in to Your Monthly Payments

Mortgage 101: Understanding 'PITI' and What Goes in to Your Monthly PaymentsAsk any friend or family member that owns a home and they will share that it takes a bit of management to keep all the expenses under control. Let’s explore the concept of PITI and why it is vital to have a clear picture of how much your home is costing you each month.

Just What Is PITI, Anyway?

PITI is an acronym that stands for “principal, interest, taxes and insurance,” which are the four main components that make up your housing costs.

Principal – this is the amount that you are paying against the total amount that you borrowed when you purchased the home. For example, if you used a mortgage to cover $200,000 of the home’s purchase price, the remaining balance of that $200,000 is the principal. A part of your monthly mortgage payment goes to paying down the principal.

Interest – this is the extra cost that the lender charges for the service of lending you the principal amount. For most mortgages, you will see this expressed as an “interest rate” which is a small percent charged on the loan. A portion of your monthly mortgage payment goes to paying down the interest owed.

Taxes – tax costs are not included in your monthly mortgage payment, but will be added by your lender as part of your yearly expenses when calculating your debt-to-income ratio (see below). Property taxes and other assessments will need to be paid each year.

Insurance – this is the cost of insuring your mortgage and your home. Like taxes, your mortgage lender will typically include some insurance costs in your DTI ratio calculation.

How Lenders Use PITI

Many mortgage lenders use some form of PITI calculation when determining your debt-to-income ratio. This ratio helps the lender understand your ability to manage your monthly mortgage payments without being at risk of missing one. The lower the ratio, the more likely you can afford all your monthly expenses.

Don’t Forget Your Other Monthly Expenses

Finally, don’t forget that along with PITI you will have a variety of other monthly expenses that need to be budgeted for. Leave some space for utilities, repairs and other renovations that need to be made throughout the year.

Once you have the full picture of what is coming in and going out each month, managing your expenses is easy. When you are ready to discuss or apply for a mortgage, get in touch with us. Our friendly team of mortgage professionals is happy to help.

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The Quick and Easy Guide to Finding the Right Builder to Construct Your Dream Home

The Quick and Easy Guide to Finding the Right Builder to Construct Your Dream HomeAre you in the market for a new house? If so, you may be considering having a custom-home designed and built to your specifications. There is no better way to get exactly what you want in a house than to have it built from scratch.

With that in mind, let’s take a look at our quick and easy guide to finding the right builder to construct your dream home.

Have Ideas In Mind Before You Start

Try to have some ideas in mind before you contact a builder. For example, how many bedrooms do you want? Are you interested in a two-car garage? Do you want a suite in the basement or elsewhere on the property for rental purposes? What about an office, workshop, media room, home gym or other amenities? Invest a bit of time in crafting a list, and your builder can help design a home that fits.

Find A Builder Before You Buy Land

At first, meeting with and securing a home builder before having a plot of land might seem premature. After all, you still don’t even know where you want them to build your house! But, in fact, this is the best way to go. A good home builder can help you understand permit rules, city or county regulations, which utilities are available in the area and more. Once they understand precisely what you are looking for in your dream home, they will be able to make an honest assessment of any particular lot. This alone can save you a significant amount of both time and money.

Verify Licensing, References And Past Work

Once you have settled on a potential builder, it is time to start the due diligence process. Ask the builder and any sub-contractors for their license details to ensure they are certified to do the work. Try to chat with at least 1-2 past references as well so you can get an idea of what it’s like to work with them.

Get All The Details In Writing

Finally, there are few financial transactions in life that should be done on a handshake and this is no exception. Your builder is going to have a contract that they will ask you to sign. Have your attorney look this document over and have them add in any specifics that are important to you.

A new construction home can be the ultimate in comfort, convenience, and luxury. When you’re ready to learn more about financing your new home, contact us today.

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